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Why SMEs should look into the Apprenticeship Incentive

The construction industry’s ageing workforce and its well-documented skills gap are encouraging many builders and subcontractors to act now to protect their futures.

Taking on apprentices is one proven way to grow your business while passing on the experienced knowledge of existing workers before it’s too late.

And now, it’s become an even more compelling option – thanks to newly announced financial support from the Government.

So what does it mean for you and how can you best take advantage of the current economic climate?

Financial backing bolstered

In an attempt to add weight to its skills push, the Government has revealed that, from 1 October 2026, SMEs will receive £2,000 for every apprentice aged between 16 and 24 that they hire.

It’s called the Apprenticeship Incentive and offers another source of help with the costs of bringing young people into construction.

There were already multiple others, such as the Apprenticeship Levy (which larger companies contribute towards but employers of any size can claim at least some money from to support their training costs) and CITB grants for some eligible businesses.

But with this extra new route putting a not-insignificant £2,000 up for grabs, it suddenly gets even more affordable to take on apprentices.

What’s the real price?

Of course, calculating the cost of offering apprenticeships is not a simple equation of wages versus funding.

Rushing headlong into hiring a young industry newcomer without the proper plans and preparations could cost you more in the long run if you find yourself struggling with capacity or offering an inadequate learning experience that’s poor for everyone.

It’s why we are doing more than anyone to help Britain’s builders and subcontractors to access specialist designed-for-construction apprenticeship training. 

Our approach means trades apprentices can qualify in as little as 17 months, with a strong focus on quality and NHBC Standards from the very start.

We’ve invested in new programmes that take the pressure of developing apprentices off your shoulders and help you reap the rewards of supporting the next generation through a route that’s already achieving better-than-industry-average post-qualification retention rates.

One provider. Endless growth opportunities.

With our growing network of multipurpose training hubs, construction companies can recruit apprentices who learn in state-of-the-art facilities under the guidance of experienced experts.

The idea is simple: you take them on, we take them further.

Businesses of all sizes can use our apprenticeship programmes, each dedicated to a specific aspect of home building, including bricklaying, site carpentry, timber frame installation, groundworks and site supervision.

But with the new £2,000 Apprenticeships Incentive specifically applying to businesses with annual pay bills lower than £3m, who therefore do not pay the Apprenticeship Levy, the benefits of choosing an NHBC programme are suddenly compounded for SMEs.

That’s because the Apprenticeships Incentive is paid for every single 16-24 apprentice you hire and our training programmes are delivered with multiple intakes throughout the year – allowing small and medium-sized businesses to recruit when it suits them, rather than needing to work around fixed September start dates.

This brings greater flexibility into the equation; you can use the Government’s support to hire more apprentices than you otherwise might, then engage with one dedicated team at NHBC to get them enrolled either all at once or at points throughout the year.

Even without factoring in the increased effectiveness of learning we’re already seeing at our hubs, that combination is brilliant for businesses who want to make the best use of their budget or, for example, spread their wage costs across different financial years.

Are you ready to think big?

Of course, we’re aware that the industry is facing challenging circumstances in what feels like a volatile, unpredictable world.

But with volumes currently below the level required to meet the Government’s target to build 1.5 million new homes this parliament, we believe now is the perfect time to address your skills so you’re set up nicely for when things pick up. 

Use the funding streams currently on offer.

Hire new apprentices with all the confidence that comes with being truly supported. Do it all before demand rises once more and you’re left wishing you had more site-ready professionals.

Ask our team for a tour of your nearest NHBC training hub or about how our apprenticeship programmes work.

For small businesses, it’s time to think big.